02-12-07 Item 7B, Preliminary Development AGreement for Funding and Guaranty for TCAAP

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11 th Draft February 7, 2007 PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT is made and entered into as of this day of ,2007 by and between the CITY OF ARDEN HILLS, a Milll1esota municipal corporation (the "City"), and CRR, LLC, a Delaware limited liability company (the "Developer"). RECITALS WHEREAS, the City and Developer entered into that certain Interim Agreement dated as of August 26, 2002, and amended by Amendment No. I thereto dated October 25, 2004 (together, the "Interim Agreement"), regarding the acquisition and redevelopment of a portion of the Twin Cities Army Ammunition Plant (the "TCAAP Site") in the City; and WHEREAS, the Interim Agreement expired in accordance with its terms on May 9, 2005; and WHEREAS, the parties have determined to amend and restate the Interim Agreement by entering into this Agreement; and \ ! WHEREAS, this Agreement concerns the portion of the TCAAP Site described in Exhibit A hereto (the "Development Property"), which property is expected to be acquired by the City from the United States of America acting by and through the General Services Administration (the "GSA") pursuant to the terms of an Offer to Purchase between the City and GSA dated August I, 2006 as amended by a letter amendments thereto dated August I I, 2006, November 15, 2006, and January ,2007, and additional amendments entered into from time to time (together, the "OTP"); and WHEREAS, the Development Property is now occupied by the former Twin Cities Army Ammunition Plant, which has been abandoned and is being disposed of by GSA on behalf of the United States of America; and WHEREAS, the City has engaged in a comprehensive planning process to guide the redevelopment of the Development Property, which process is intended to remove impediments to development, maximize the property's potential for revitalization of the City and surrounding region, increase tax base for the City and all taxing jurisdictions, and increase commercial and housing opportunities at this critical site in the City; and WHEREAS, the parties acknowledge that there are significant environmental issues affecting the Development Property, and that redevelopment of the property will require zoning changes, significant remediation activities and substantial infrastructure improvements; and